In the Cournot model, a firm maximizes profit by selecting
A) its output, assuming that other firms keep their output constant.
B) its price, assuming that other firms keep their price constant.
C) its output, assuming that other firms will retaliate.
D) its price, assuming that other firms will retaliate.
A
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The problems of inflation and unemployment are
A. only relevant to European economies. B. not relevant to the U.S. economy. C. major topics of microeconomics. D. major topics of macroeconomics.
Which of the following is an example of a topic studied by macroeconomists?
A) Utility maximization by a consumer B) Decision making by a producer C) Aggregate demand in an economy D) Price determination by a firm
The relationship between the MP and MC curves is
A) over the range where the MP curve has a negative slope, the MC curve also has a negative slope. B) over the range where the MC curve has a positive slope, the MP curve also has a positive slope. C) over the range where the MP curve has a positive slope, the MC curve has a negative slope. D) that the MP is not defined when the MC curve has a negative slope. E) There is no predictable relationshi
A contestable market is one in which
A) one dominant firm sets the market price, and all other firms are price takers. B) if a firm cuts its price, all other firms will follow the price cut. C) one or a small number of firms operate, but faces competition from potential entrants. D) a group of firms enter into an agreement to restrict output and raise prices.